M21020 - Prudential treatment of software assets

FinanceMalta

February 26, 2021

M21020 - Prudential treatment of software assets

Banks all over the world are investing in new banking technologies at a time when bank customers are progressively going digital in several dimensions of their economic and social interactions. The COVID period has even accelerated this investment as banks had to support their staff through remote working technologies. However, current prudential rules penalise rather than incentivise the use of banking software since software is treated as a cost rather than as an investment. To support banks in pursuing further investment in software development, the CRR2 introduced an exemption from the deduction of intangible assets from Common Equity Tier 1 (CET1) items. The focus of this session will be to understand the new computation, the exemption and the impact on bank’s capital.

Overview

High level review of IAS 38;
How the revised CRR impacts accountants in banks;
Options considered by EBA;
Differences between Accounting and Prudential treatments of software assets;
Working out a practical example

Why Attend?

Agenda Highlights:

09:15 - Registration
11:00 - End Time

Confirmed Speakers

Mr Jonathan Agius - Jonathan Agius is a Certified Public Accountant who has been working for Bank of Valletta for more than 20 years. Currently Jonathan heads the Statutory Reporting Department where he is responsible for the prudential, resolution and the respective statistical reporting emanating from various regulations and directive. Jonathan is also the responsible officer for Qualified Intermediary, FATCA and CRS obligations. Prior to this role, Jonathan spent 16 years within the Finance department of the same bank responsible for the management reporting and technological implementations of the unit. Jonathan holds a degree in Management and Accountancy from the University of Malta, an MBA specialising in Strategic Management from Maastricht School of Management and is a member of the Fellowship of Chartered Certified Accountants (FCCA).